
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, August 5, 1994                   TAG: 9408050102
SECTION: NATL/INTL                    PAGE: A2   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE: WASHINGTON                                 LENGTH: Short

STUDY: TAXPAYERS FOOT BILL FOR BLUES FUNCTIONS

Employees of the not-for-profit Blue Cross/Blue Shield organizations responsible for managing federal employees' health insurance plans gathered in Atlanta for their 1993 annual meeting.

There was a sumptuous banquet, a live performance by the Atlanta Brass Ensemble, a three-screen video presentation, gifts, tote bags, awards and a general good time.

Why not? U.S. taxpayers were picking up the tab.

The event cost $648,798, and the government paid $509,906. The rest was charged to another account of organizational ``profits'' that also largely came from the U.S. government.

The government paid because Blue Cross/Blue Shield manages most the government's Medicare spending and much of the federal employee health plan. Or mismanaged, if you believe a new congressional report scheduled for release today.

A copy of the study was obtained by Knight-Ridder.

The report describes wasteful Blue Cross/Blue Shield extravaganzas - which have included mechanical bull rides, stage shows, riverboat excursions and other frills like sunglasses, coffee mugs and paperweights.

While the Senate investigation does not estimate the total money potentially wasted, the size of the Blues' organization suggests it could amount to millions.

by CNB